Figures year to date reached $27 billion, the most active first nine months of the year on record. Telecommunications is the most targeted industry in the Middle East with $12 billion, 44 percent of the activity.

The Thomson Reuters report said Kuwait was the most acquired Middle Eastern country with $12.5 billion, 46 percent of the activity. United Arab Emirates is the most acquisitive Middle Eastern country for the first nine months of 2010 with 57.8 percent. Kuwaiti companies are the most attractive to Middle Eastern acquirers, with 37 percent of the activity.

Commenting on the Middle East M&A activity, Jarmo T. Kotilaine, chief economist of NCB Capital, said: "This is very welcome news and suggests that things are finally beginning to normalize in the financial markets. Obviously we still have to be a bit careful in as much as large single deals are still having a big impact on the headline figures which therefore can be volatile quarter-to-quarter. But this does conform to the general impression of reduced market stress in the wake of positive developments with Dubai World, etc."

He said many activities/deals had been put on hold earlier in the crisis but it is beginning to look like the deal flow is becoming more active. "This is positive news for next year given the negative effect of restricted credit and slow capital markets on private sector activity this year. The trend in M&A is particularly encouraging in view of the necessary corporate restructuring and the efficiency gains promised by consolidation," Kotilaine said.

Morgan Stanley topped the M&A Middle Eastern Involvement Ranking with $26.3 billion, with BNP Paribas coming in second with $14 billion followed by Barclays Capital with $12.4 billion, the biggest mover was BNP Paribas who jumped up 24 places into the top 5.

The top Middle Eastern targeted deal for 2010 involved Emirates Telecommunications (Etisalat) which planned to acquire a 46 percent stake in Zain Group, a Safat-based provider of wireless telecommunication services, from Mohamed Abdulmohsin Al-Kharafi & Sons Co. (17 percent) and other sellers, $11.7 billion, in a privately negotiated transaction.

The report said equity issuance so far this year reached $5.2 billion for the first nine months of this year, down 2.3 percent year-on-year. Followons are the most active issue type this year with $3.3 billion, 64 percent of the activity. Financials is the most active industry in the Middle East year to date with 50 percent of the activity, materials and real estate come second and third respectively. EFG Hermes and NCB Capital Corp. come 1st and 2nd respectively in the Middle Eastern ECM ranking so far this year. The largest equity issue of the year is the Boubyan Bank follow on issued on the Kuwait exchange worth $515 million.

Middle Eastern fees reached $444.8 million so far this year, up 16 percent when compared to the first nine months of last year. M&A fees account for 58 percent of the activity, up from 57 percent for FY 2009.

Middle Eastern debt issuance reached $22 billion so far this year, down 7 percent from $23.7 billion when compared to the same period last year.

Loan activity for Middle Eastern issuers/borrowers reached $18.9 billion so far this year, despite lower activity in Q3 this year with $3.2 billion down from $6.5 billion in Q2.